Transact. Terms and Conditions for the Transact wrap service (incorporating a General Investment Account)

Transcription

1 Transact Terms and Conditions for the Transact wrap service (incorporating a General Investment Account) Integrated Financial Arrangements plc A firm authorised and regulated by the Financial Conduct Authority

2 CONTENTS 1. Introduction Definitions Setting up and maintaining a Portfolio Carrying out Transactions in your Portfolio Protecting your Investments and Cash and pooling risks Keeping you informed Order execution policy Conflicts of interest policy Our commission rates Payments to your Adviser Other charges and payments Changing Adviser Closing your Portfolio or a Wrapper If you die Complaints Financial Services Compensation Scheme Excluding liability, limits of compensation and relying on others Compensating us Recording calls Data Protection Changes Notices and communications Remedies and waivers Unenforceability Third party rights Governing law 16 Annex 1: Order Execution Policy Summary 16

3 INTRODUCTION As you and your Adviser manage your personal portfolio of investments, this will give rise to a number of investment and cash transactions. The Transact Portfolio is designed to execute these transactions for you in an efficient and cost-effective way. Over time, the number of transactions you ask us to carry out will vary as your needs change and due to the various factors that influence the performance of your investments. Transact is priced accordingly, to make possible the economical management of a complete portfolio over the longer term. Instead of the more commonplace variety of charges made elsewhere, Transact dealing charges are broadly standardised across all asset classes and investment types. Most of the cost of carrying out transactions is reflected in our Annual Commission so that our Buy Commission does not inhibit prudent and appropriate changes to your Portfolio. This makes a single static investment less cost-effective but provides value-for-money execution of an actively managed personal investment portfolio. These terms and conditions, together with your Portfolio Application Form, create a legally-binding agreement between you and us relating to the operation of your Transact Portfolio. Please read them carefully because we will rely on them in all our dealings with you. If there is anything you do not understand, you should contact us or your Adviser for help. We will treat you as a retail client in line with FCA rules and will carry out all Instructions from you or your Adviser on an execution-only basis. This means that we will not provide recommendations or advice on the features (including advantages and disadvantages) or suitability of any Investment or Wrapper within your Portfolio. You and your Adviser are responsible for making sure that a particular Investment is suitable for a particular Wrapper and for assessing the suitability of any Investment or Wrapper for your tax planning needs. You may give us Instructions for all Wrappers in your Portfolio. If your Instruction relates to a Wrapper provided by another Group company we will carry out your Instruction on behalf of that Group company and in line with these terms and conditions. Whenever we refer to any particular legislation or regulations in these terms and conditions we also mean any amendment or replacement of it and any other legislation made under it. 2. Definitions In these terms and conditions, the words and phrases set out below have the meanings shown. Adviser Adviser Payment Instruction Annual Commission Appropriateness Assessment Business Day an FCA authorised financial adviser firm registered with us and appointed by you to provide intermediary services with regard to your Portfolio. an Instruction about any payment you want us to make to your Adviser. the payments you make to us worked out as described in clause 9 below by referring to the rates set out in the Transact Commissions and Charges Schedule. our assessment of your knowledge and experience in relation to a particular type of Investment which may be required in relation to Instructions concerning Complex Products. a day on which the London Stock Exchange and banks in England and Wales are open for business. Buy Commission Cash Complex Products Discretionary Manager Express Trade FCA Fund Manager the payments you make to us worked out as described in clause 9 below by referring to the rates set out in the Transact Commissions and Charges Schedule. the money in your Portfolio. any financial product defined as such by the FCA. someone you have appointed to make decisions about some or all of your Investments. an Instruction received by 3.30pm on a Business Day to carry out, on the same day, a Transaction in shares listed on the London Stock Exchange (as referred to in clauses 4.3(3) and 4.4(2)). We charge a fee for this as set out in the Transact Commissions and Charges Schedule. the Financial Conduct Authority or any replacement or successor body of it. the organisation which manages a fund of investments. 03

4 General Investment Account or GIA Group the Wrapper set up when you open your Portfolio, which may hold Investments and Cash. us and our wholly-owned subsidiaries including, IntegraLife UK Limited, IntegraLife International Limited and Transact Nominees Limited as well as any other holding companies or subsidiaries. Template Rebalance Transact Annual Commission Table an Instruction to sell and buy Investments listed in a Template to restore the percentages or to add or remove Investments or to change the percentages. the table contained in the Transact Commissions and Charges Schedule which shows the applicable Annual Commission. HMRC Instruction Investment Minor Month New Cash Nominated Account Nominee PIN Portfolio Portfolio Application Form Registered Individual Switch Cash Template Her Majesty s Revenue and Customs. a direction from you or your Adviser about your Portfolio which we receive or which we treat as having been received from you or your Adviser in line with these terms and conditions or any other terms and conditions which may apply to a particular Wrapper. any asset in your Portfolio other than Cash. an individual who is under the age of 18. a calendar month. for the purposes of clause 3.9, clause 4.5 and clause 10 only, all Cash other than Switch Cash. the UK bank or building society account in your name which you choose in a letter or your Portfolio Application Form as the account to which we will make payments if you instruct us to transfer Cash out of your Portfolio. Transact Nominees Limited and any other company we appoint to act as a nominee. your personal identification number. the set of Wrappers that you hold with us. the applicable Transact form which you must complete to apply for a Portfolio (currently T001, T001(TR) or T001(CA)). an authorised individual who works for your Adviser and who your Adviser tells us is providing intermediary services for you in relation to your Portfolio. for the purposes of clause 3.9, clause 4.5 and clause 10 only, Cash proceeds from the sale of Investments (but excluding Cash proceeds from the sale of Investments which you transferred to your Portfolio from a third party). a list of Investments and the percentages, by value, that each Investment represents of the total value of Investments listed. Transact Buy Commission Table the table contained in the Transact Commissions and Charges Schedule which shows the applicable Buy Commission. Transact Commissions the schedule setting out our and Charges Schedule commissions and charges which your Adviser gives you with these terms and conditions before you sign the Portfolio Application Form and which is also available from Transact Online, from us or from your Adviser. Transact Online Transaction UK USA VAT VAT Adjustment Value we, us or our Wrapper you or your the Transact website at buying or selling Investments or using Cash in any Wrapper following an Instruction. England, Wales, Northern Ireland and Scotland, but not the Isle of Man or the Channel Islands. all states, territories and possessions of the United States of America. value added tax as governed by the Value Added Tax Act 1994 (as amended or replaced from time to time). an amount designed to meet any VAT liability incurred by the Adviser for the provision of their services. the value of all Investments and Cash held in a Wrapper or in your Portfolio, whichever applies. Integrated Financial Arrangements plc (registered number ) of 29 Clement s Lane, London EC4N 7AE. a tax or legal structure which we make available and in which we hold Investments and/or Cash on your behalf. any legal person (including trustees and companies) which has a Portfolio. 04

5 3. Setting up and maintaining a Portfolio 3.1 Opening your Portfolio (1) To open your Portfolio, you must fill in, sign and send us your Portfolio Application Form. When we set up your Portfolio and confirm this to you, a legally binding agreement is created between you and us, which is governed by these terms and conditions. (2) Unless otherwise agreed with us, at all times you have a Portfolio, you must: (a) Be aged 18 or over (subject to clause 3.4 below) (b) Be either a UK national or UK tax resident (c) Have an open Nominated Account (d) Have appointed an FCA authorised Adviser which is able to act on your behalf (e) Not be living in the USA. (3) You must tell us where you live for tax purposes and let us know about any changes to your address, residential status or citizenship whilst you have a Portfolio. Should your residential or citizenship status change whilst you have a Portfolio additional regulatory and legal requirements may become applicable. In such circumstances we reserve the right to take whatever action we deem necessary to ensure that we are in full compliance with our regulatory and legal obligations and such action may include the closure of your Portfolio and/or the sale of some, or all, of your Investments. (4) You must pay at least 5,000 in cash or investments into your Portfolio on set-up or make a minimum deposit of 1000 and further deposits of at least 200 a Month. You can make cash deposits by cheque, direct debit or electronic transfer. We may accept deposits from a third party if we have agreed to the transfer of assets into your Portfolio from that third party. (5) Once we open your Portfolio, we will send you a letter. This will contain your Portfolio number which you must use in all correspondence with us. We will send you separately your confidential PIN and tell you how you can use it. (6) You must take all reasonable precautions to prevent unauthorised use of your PIN and you must let us know immediately if you suspect or discover that someone else knows your PIN. Until you do so, we will be entitled to assume that any Instruction given to us using your PIN, is an Instruction given by you. (7) You should note that the functionality of your Portfolio may be limited until we have satisfactorily verified your identity and completed our anti money laundering processes. 3.2 Your right to change your mind (1) Once you receive a letter confirming that we have opened your Portfolio, you have 30 days to change your mind and cancel it. any amounts deducted from your Portfolio prior to receipt of your Instruction to cancel. You will also be legally responsible for any loss resulting from any fall in the value of Investments you have instructed us to buy, and any other loss suffered over the period, until you cancel. (3) For full details of the cancellation rights applying to each Wrapper please see the relevant Wrapper s key features document. 3.3 Joint Portfolios Portfolios which are opened as part of a joint application are held by each person applying as joint tenants. This means that both holders own the whole Portfolio and do not each have their own distinct share in it. If one holder dies, the other automatically becomes the only holder, as set out in clause 14. Instructions, written notices or any other similar communications sent by one Portfolio holder will be binding on all holders of that Portfolio, however, we may require signatures from all Portfolio holders in order to carry out certain Instructions (for example, changes to Nominated Account or address details). Joint Portfolio holders are separately legally responsible for all obligations of both of them (including, but not limited to, the payment of all due fees, charges and commissions). 3.4 Minors Minors may open a Portfolio but will only be permitted to hold certain Wrappers in it. By virtue of opening a Portfolio a Minor will also have a GIA by default but they will only be able to hold Cash (i.e. not Investments) within it. Please see each Wrapper s terms and conditions and key features documents for more information. 3.5 Designated Portfolios You may open a Portfolio and designate it to be for the benefit of a Minor. Such designation must be made clear on your Portfolio Application Form. You will retain legal ownership of the Investments and Cash in the Portfolio and in all other respects these terms and conditions will apply to such designated Portfolios. 3.6 Trusts Where a Portfolio is held in the name of a trust, each trustee will be jointly and severally liable for the actions of the other trustees and generally we will accept Instructions from one trustee on behalf of all the trustees. However, for certain actions and Instructions we will require express written consent from all of the trustees. Such Instructions include (but are not limited to) the following: (a) (b) (c) (d) Setting up a Portfolio Registering or changing Nominated Account details Registering a new Adviser or changing an existing Adviser Closing a Wrapper or Portfolio. (2) If you decide to cancel, we will not charge Annual Commission on any Investments. However, you will be legally responsible for all other commission payments, charges and fees including any outstanding Adviser payments and we will not refund 05

6 3.7 Appointing an Adviser You must appoint an Adviser to open a Portfolio. Your Adviser can only represent you in relation to your Portfolio when we have registered them and the relevant Registered Individual. You authorise us to accept Instructions from your Adviser and their Registered Individuals as if the Instructions were coming direct from you. Subject to clause 17, you also agree to compensate us for all costs, claims, expenses, damages or liabilities which we may suffer by acting on any Instruction from your Adviser or any of its Registered Individuals. If you tell us that you have appointed a Registered Individual as your Adviser, we will treat this as notification that you have appointed the firm with which that Registered Individual is registered. You must inform us immediately if you receive anything from us that shows incorrect details of your Adviser or Registered Individual (as applicable). 3.8 Portfolio Value and Cash balances You must keep at least 5,000 in your Portfolio and a minimum Cash balance in each Wrapper of 2% of the Value of that Wrapper. Where a Wrapper contains multiple constituent parts (for example, where part of a Wrapper is invested in a Template or a pension contains a number of different arrangements) the requirement to maintain a 2% Cash balance applies to the Value of each of those distinct parts. If you fail to maintain this balance, we can refuse any Instruction and cancel any regular buy Instruction or withdrawal Instruction. We also reserve the right to close the relevant Wrapper, or sell any Investments in it, or any other Wrapper, to restore the minimum Cash balance and the value of any regular withdrawals planned for the next three Months. 3.9 How we treat Cash balances (1) We can use any Cash due to you to pay off any amounts you owe us and have not paid. More details of this right are set out in clause 5.3. (2) If we are not allowed by law or regulation to take amounts from or add them to a particular Wrapper, or if we believe there is some other good reason to do so, we will take the amounts from, or add them to, your GIA instead. (3) If you withdraw Cash, we will first use New Cash and then, to the extent necessary, Switch Cash. If you buy Investments, we will first use Switch Cash and then, to the extent necessary, New Cash Interest on Cash (1) We place Cash in one or more interest-bearing accounts at banks or other appropriate financial institutions. We then credit each Wrapper in your Portfolio with interest after the end of each Month. The interest we pay will change from Month to Month and is the interest we receive applied in proportion to your average daily Cash balance. (2) Where settlement mismatches arise or late payments are made, equalisation will be applied to Cash to the amount of the mismatch or payment at the crediting rate which we have set, acting in a commercially reasonable manner, for the relevant accrual period. (3) We do not pay interest on any Cash that we are holding to pay for any incomplete purchase Transaction, including a purchase Transaction with a price limit set by you or your Adviser under clause 4.3(13). 4. Carrying out Transactions in your Portfolio 4.1 Form of Instructions (1) Subject to sub-clause (2) below, you or your Adviser can give Instructions by: Using the PIN-protected pages on Transact Online Letter or fax, in either case signed by you or your Adviser Phone, after we have checked your or your Adviser s identity. (2) Your Instructions relating to the following changes must be given by written Instruction signed by all Portfolio holders and posted or delivered to us by hand (and such Instructions will be deemed received by us as set out in clause 22 below): Changes of name or address Changes to Nominated Account or personal payment details Changes to Adviser payments (subject to clause 10(2)(b)) Instructions relating to transferring the Portfolio or other changes to Portfolio holder details. 4.2 Confirming Instructions The details of an Instruction which we have received and accepted will be set out in the Portfolio valuation and Transaction listing pages on Transact Online. The Transaction will also be shown in any contract note and any confirmation we may send to you or your Adviser. If you cannot find details of a Transaction on Transact Online or do not receive a contract note or separate confirmation when you expect to you should contact us as soon as possible. 4.3 Instruction conditions (1) minimum Cash requirement We will not process any Instruction if you do not have enough Cash in your Portfolio to cover the costs of the Instruction over and above the minimum Cash balance (as set out in clause 3.8). If you do not have enough Cash we may treat the Instruction as void and cancelled. (2) minimum and maximum values The following limits apply for each Instruction. (a) For selling and buying Investments, the minimum value is 1 for Investments listed on the London Stock Exchange. For all other Investments, the minimum value is 1 or the dealing limit applied by the Fund Manager or product provider, whichever is higher. For regular purchases, the overall minimum values are 300 every three Months, 600 every six Months and 1,000 a year. 06

7 (b) For Cash deposit Instructions, the minimum value is 100 unless the deposit is made by direct debit, in which case the minimum value is 50 for a Monthly direct debit. The current maximum value for a Cash deposit Instruction made by direct debit is 49,999, unless regulations state a lower limit. (3) Timing (a) We must receive Instructions before 1pm, or in the case of Express Trades before 3.30pm, for us to be able to process them on the same Business Day in accordance with clause 4.4. If an Investment does not deal on a daily basis, you should check Transact Online for details of when it does deal and send Instructions so we receive them by 1pm on the relevant date if that is a Business Day. If it is not a Business Day you should send your Instructions by 1pm on the previous Business Day. (b) We can choose whether to process Instructions received at or after 1pm (or in the case of Express Trades at or after 3.30pm) on the same Business Day or the next Business Day. (c) We will carry out an Instruction for an Express Trade as soon as possible after we receive it and usually expect to do this within one hour. However, this will depend on the number of Express Trades received that day and the type of Transaction requested. Also, when we rely on other organisations to complete a Transaction this may lead to delays in carrying out your Instructions. (d) On each of the Business Days immediately before Christmas Day and New Years Day, we can choose to treat any Instruction or other communication we receive after 11am (in relation to aggregated dealings) or 11.30am (for Express Trades) as being received on the next Business Day. (4) Investment details All Investment Instructions must include: (a) An ISIN number (or equivalent), if there is one (b) The full name of the Investment (c) The applicable designation or class of the Investment (d) If you want us to buy an Investment on a regular basis, whether we should buy that Investment Monthly, quarterly, biannually or annually (e) The quantity or cash value of the assets to be bought or sold. (5) Incomplete or ambiguous Instructions If you do not provide the Investment details set out in sub-clause 4 above or if your Instructions are incomplete or ambiguous, we will be entitled to: (a) Treat an Instruction for unit trusts or OEICs, where there are different classes of units or shares available, as an Instruction to buy income units or shares (b) Treat an Instruction for shares, where there are different classes available, as an Instruction to buy ordinary shares (c) Delay accepting the Instruction while we ask you or your Adviser to clarify (d) Reject the Instruction (e) Carry out the Instruction for the Investment which appears to us to be the closest to the Investment described in your Instruction. In each of the scenarios above, we will not be legally responsible to you for any loss which you may suffer as a result of our actions. (6) mistakes and limits of compensation (a) As we provide execution-only intermediary services, you and your Adviser are responsible for checking that we have carried out your Instruction accurately, and informing us if an Instruction you have given (or believe you have given) has not been carried out or been carried out incorrectly. (b) You accept and agree that if you do not tell us about mistakes within 14 days, starting on the date on which you could first have known that we failed to carry out an Instruction or carried it out incorrectly (the 14-day period), we will not pay more in compensation than the value of your direct loss on the last day of the 14-day period. (c) With reference to clause 4.3(6)(b) above, we will treat the date on which you could first have known that we failed to carry out an Instruction, or carried out an Instruction incorrectly, as the earlier of: (i) The date that the details of the resulting Transaction were first posted or should first have been posted on Transact Online, and (ii) Two Business Days after the date we issue the relevant contract note or other written notice (if any is issued) to you or your Adviser. (d) For example, if we buy the wrong Investments on your behalf and you do not tell us about this mistake before the end of the 14-day period, we will consider you to have accepted ownership of those Investments. If you then instruct us to sell those Investments and buy the correct Investments, we will compensate you for any loss you suffer as a result of selling the wrong Investments and any extra cost as a result of buying the correct Investments by reference to any change in price between the date of your first Instruction and the last day of the 14-day period. (7) expenses We will take costs, expenses and charges from the stated value of the Instruction unless you tell us otherwise in that Instruction. This means that, for example, if you send us an Instruction to buy an Investment for 5,000, we will take any applicable costs, expenses and charges from that amount before we use it to buy that Investment. 07

8 (8) Cancellation If you ask us to cancel an Instruction before we complete it we will use our reasonable endeavours to do so. However, if we cannot cancel the Instruction, we will have no liability to you for failing to do so. (9) right to refuse Instructions and to sell Investments We can refuse to carry out any Instruction, or sell (or cash in) any Investment allocated to any Wrapper within your Portfolio if we believe: (a) That carrying out the Instruction or keeping the Investment might affect how we operate your Portfolio or the legal, tax or regulatory status of any particular Wrapper (b) That by carrying out the Instruction we would be breaking any law or regulation of the country where you are a citizen or resident (temporarily or otherwise) or any law or regulation to which we are subject. In each of the above circumstances we will not be legally responsible to you for any losses you may suffer as a result of our refusal to carry out your Instructions or decision to sell your Investment. (10) Investment advice Each time that you send us an Instruction, we will treat that Instruction as confirmation that you have read the relevant documents for that Investment, understood the risks associated with it, the required regulatory disclosures and, where appropriate, taken specialist advice. We do not provide or distribute any documentation relating to Investments (such as prospectuses, information memoranda or key features documents). (11) suitability and appropriateness (a) The availability of a particular Wrapper, stock, fund, or other product or asset, or any other function or feature of Transact does not imply that it is necessarily suitable for you and you should seek specialist advice. (b) In providing intermediary services to you in relation to Investments which are not Complex Products we are not required to assess the suitability or appropriateness of that product or service for you. You confirm and agree that you will satisfy yourself that the Investment is suitable for your needs, having taken specialist advice where appropriate, and that you are eligible (in line with the terms of that Investment) to invest in it. If we ask, you must give us evidence that you are eligible to invest in any particular Investment. (c) If you send us an Instruction to trade in Complex Products, rather than your Adviser sending us that Instruction, you will need to complete an Appropriateness Assessment. We may refuse to accept your Instruction if we have reason to believe you do not understand the risks involved in that Investment. (12) Templates not given us all the information we need to carry out any Appropriateness Assessment required by law or regulation. If your Adviser uses a Template in a particular Wrapper and you or your Adviser give us an Instruction to carry out a Template Rebalance: (a) The Instructions must have a minimum Transaction value of 50 including charges (b) We treat these Instructions as a single Instruction and so we give you one contract note (c) We cannot guarantee to match exactly the percentages in the Template as the prices in the Instruction might be different to the prices we actually achieve. (13) Price limits and phased purchases You may place either of the following conditions on purchase Instructions: (a) For Investments listed on the Official List of the London Stock Exchange, you may specify price limits. Any such Instruction specifying a price limit will be deemed to expire if the related Transaction is not completed on the same Business Day as the Instruction is received (b) If you give a single Instruction to buy Investments listed on the Official List of the London Stock Exchange with a value of at least 1500, or other Investments with a value of at least 600, you may choose in your Instruction to have your purchase phased over six equal Monthly instalments. (14) other (a) If a Fund Manager or other Investment product provider divests or modifies your holding under the terms of a particular Investment, we will treat it as you giving us an Instruction to divest or modify that holding. (b) If you appoint a Discretionary Manager it is your responsibility to ensure that you give us Instructions in line with the agreement between you and the Discretionary Manager. (c) At all times, you are responsible for compliance with all laws, regulations and rules which apply to your holding any Investment, including any tax, foreign exchange or capital controls. You are also responsible for reporting or filing requirements that may apply as a result of your country of citizenship, domicile or tax residence. In particular, if you want to hold USA-based Investments, you must complete and provide the appropriate documents to comply with the tax requirements applicable in the USA. We reserve the right to sell any Investments held by you where we or a third party require you to complete documentation to evidence your tax status (such as a W-8BEN) and you do not submit such documentation within a reasonable period of time. (d) We will not be liable for any failure or delay in accepting or carrying out Instructions if you have 08

9 4.4 Dealing with orders to buy and sell Investments (1) Aggregated dealing (a) We aggregate all valid Instructions relating to the same Investment and place them as a single Transaction in the name of the Nominee with the execution venue we have chosen on the basis described in Annex 1. We do not net buy Instructions against sell Instructions. By combining all valid Instructions received relating to the same Investment, we aim to achieve the best possible result for you while providing a fair way of dealing with all Instructions. (b) Unless we agree otherwise, for Instructions received before 1pm on a Business Day, we place all aggregated buy Instructions and all aggregated sell Instructions from 2pm until those Instructions have been executed within working hours on the same Business Day. (c) If, for any reason, we cannot place your Instruction on any Business Day, we will attempt to place it on the following Business Days until either it is executed or we decide (in good faith and using our reasonable business judgement) that the Instruction is unlikely to be placed. At this point, we will treat the Instruction as cancelled. (d) As we deal with all of your Instructions on an aggregated basis in some circumstances a Fund Manager or other person might: (i) Add extra taxes, penalties or charges such as a dilution levy, a redemption penalty or cancellation charge, or scaling back (ii) Delay dealing part of the aggregated total until a later valuation point (iii) Allow you to buy an amount of an Investment which you will not be able to sell unless it is aggregated with Instructions from other clients (iv) Allow you to hold an Investment in an amount which would not otherwise be enough to meet the minimum holding requirements. In each case this may not have happened if the Instructions had been placed individually and in these circumstances we will: (i) Share out the taxes, penalties or charges between you and all other clients fairly (ii) Wait until we have dealt all aggregated Instructions before sharing out the assets or proceeds to you and our other clients (iii) Delay your sale Instruction until we have enough aggregated sale Instructions to meet the minimum dealing limit (iv) If required by the manager of that Investment, sell your Investment and pay the Cash we receive into your Portfolio. (3) regular purchases We will aggregate all valid Instructions (including any of your Instructions) for regular purchases in the same Investment and will place orders for these on the ninth day of each Month (if this is not a Business Day, we will place them on the next Business Day). We aggregate regular purchases with the non-regular purchase Instructions for that Investment. (4) Use of assets From time to time, in operating aggregated dealing, we need to use assets held in the aggregated pool for one or more clients on behalf of other clients. Reasons for this include the necessity to deal with unit rounding and unexpected differences in settlement timing. Where this occurs, we substitute our own money to the value of the assets affected, recalculated daily, so that clients are not disadvantaged. You hereby consent to us using assets in your Portfolio in this way. (5) General (a) We do not guarantee that your Instruction will be carried out at a specific time or at a specific price. (b) If necessary we may delay processing an Instruction due to circumstances beyond our control. In these circumstances, we will normally process the Instruction on the first Business Day after the end of the period of delay. (c) You agree that, on instructing us to buy or sell an Investment, you are also instructing us to process that Instruction in the most efficient way. Where we consider it necessary, or it is required by a third party s terms of business, you agree to us paying Cash to a third party (such as a broker or fund manager) before we have received title to the Investments on your behalf. (d) You understand that you cannot give any Instructions while you are in the USA. 4.5 Adding Investments and Cash to your Portfolio (1) The following will be credited to the appropriate Wrapper in your Portfolio as New Cash: (a) Cash deposits which you make from time to time (b) Income (including, without limitation, dividends) received in respect of Investments (c) Cash rebates which we receive from Fund Managers or product providers (d) Interest, in accordance with the provisions of clause 3.10 above. (2) If another organisation settles an Instruction in one or more parts, we may add the Investments covered by any part settlement to your Portfolio as soon as reasonably possible after we receive the part settlement, or we may decide to wait until the Instruction is fully settled. (2) express Trades We reserve the right to include Express Trades in an aggregated dealing process where we consider it appropriate. 09

10 (3) If we have to place aggregated Instructions in batches (over more than one dealing time or Business Day) and this means we obtain different prices for different batches, the price for each batch will be applied to the relevant proportion of each client s share of the aggregated Instruction when Cash or Investments are added to each client s Portfolio. (4) The allocation of Investments and Cash is subject to a right of set-off, set out in clause 5.3 below, against any monies which you owe us but which remain unpaid at that time. (5) Please note that we do not reclaim tax on your behalf relating to a credit attaching to dividends received from UK investments, foreign income dividend or any equalisation distributed as income. 4.6 Withdrawal Instructions (1) First withdrawal Instruction We will only accept an Instruction to make a payment after your Portfolio has been open for at least seven Business Days and our anti money laundering processes have been completed to our satisfaction. (2) If the terms which apply to a Wrapper allow, you can instruct us to pay Cash withdrawals to your Nominated Account or to your GIA on a single or regular basis. The minimum payment is 100. (3) You can ask to make regular withdrawals every Month, every three Months, every six Months or every year. You can ask to make these withdrawals on the 7th, 17th or 27th day of the payment Month (if your selected day is not a Business Day payment will be made on the previous Business Day). (4) As well as giving us a date for regular withdrawals, you can instruct us to pay to your Nominated Account all Investment income (including interest if you opt to include it) received as Cash into any specified Wrappers during the relevant period subject to the terms and conditions of the relevant Wrapper. (5) We may use any amount you want to withdraw to pay off any amount you may owe us and have not paid. 4.7 Corporate actions and notices (1) We provide intermediary financial and wrap services only; we do not administer the Investments, or advise on the Investments, which we hold within your Portfolio for you. As a result, it is your and your Adviser s responsibility to monitor any corporate action for the Investments which you have bought, or transferred into your Portfolio. We will not send you copies of reports and accounts or meeting and voting information or other documents about corporate actions issued by the providers of Investments. Subject to sub-clause (2) below, we will not use any voting rights which may attach to your Investments. (2) If you ask and we agree, we will use our reasonable endeavours to provide information about corporate actions on a case by case basis. If we agree to do so, please note that: (b) Your Instruction must tell us what action to take in respect of the corporate action in question, and how such action must be taken by us in order to be valid under the terms of that corporate action (c) We may charge a fee for this service based on the amount of work we have to do. 5. Protecting your Investments and Cash and pooling risks 5.1 Protecting Investments (1) If we hold Investments for you, these will be registered in the name of our Nominee or a third party Nominee. You will either be the beneficial owner of the Investments or entitled to the value of the Investments, depending on the Wrapper they are held in. Your Investments are ring-fenced from our assets and are subject to regular checking and reconciliation. (2) Transact Nominees Limited is our wholly owned subsidiary. It is not authorised or regulated under the Financial Services and Markets Act It only holds Investments and does not carry on business in its own right. We accept responsibility for its acts (and failure to act) to the same extent that we are legally responsible for our own acts and failure to act. We also accept full responsibility for any obligations it may owe you if it becomes insolvent. We will not be legally responsible for any act, insolvency or negligence by any third party custodian we do not control unless we have failed to take reasonable care in choosing, appointing and reviewing such third party custodian. However, we will use our reasonable endeavours to make available to you any rights that we may have against those third parties. (3) If your Investments are subject to the law of a jurisdiction other than that of an EEA state, those Investments may be subject to different settlement, legal and regulatory requirements than those which apply within the UK or EEA. 5.2 Protecting Cash (1) We hold your Cash, as your trustee, in client money bank accounts in line with the FCA s client money rules. (2) We will always deposit your Cash with one or more banks which are authorised and regulated by the FCA and which are covered by the Financial Services Compensation Scheme (see clause 16 for more details). We hold your Cash separately from our own money. (3) We will not be legally responsible in the event of the default of any bank that is holding your money in accordance with these terms and conditions. However, we will use our reasonable endeavours to make available to you any rights we may have against such banks. (4) In order to buy and sell Investments on your behalf, we may be required to hold your Cash with a third party custodian. This means that in the event of that third party s default or insolvency, there is a risk that you may lose some or all of your Cash held with them. (a) We rely on others for details of corporate actions and when we send any such details to you, this is for ease of reference only and we accept no liability or responsibility for the accuracy of those details 10

11 5.3 Our rights over your Investments and Cash (1) A lien is a right which entitles us to keep any of your Investments or Cash while we wait for you to pay off any debt you owe us. As well as any other rights we may be entitled to under any law, we will have a general lien over all your Investments and Cash we hold or control until you have paid off all your debts, liabilities and obligations owed to us under these terms and conditions. (2) If you owe us a debt we may use any of your Investments or Cash that we hold or control to pay off or reduce that debt. (3) In the unlikely event that we mistakenly add any Cash or Investments to your Portfolio, we may remove them from your Portfolio. If you have withdrawn the Cash, or sold the Investments and withdrawn the proceeds of sale, we will treat the Cash withdrawn as a debt and we may use any of your Investments or Cash we hold or control to pay off or reduce that debt. (4) We will not be liable for any tax charges or other losses incurred by you or us as a result of us exercising our rights to sell your Investments and/or apply your Cash. 5.4 Pooling risks Your Investments may be pooled with those of our other clients. This means that: (a) (b) (c) In the event of our, or any of our custodians default or insolvency, if there is a shortfall which cannot be reconciled, there is a risk that you may have to share proportionally in that shortfall There is a risk that your options may be limited in respect of corporate actions You may receive dividends or other distributions net of tax which has been paid or withheld at a less advantageous rate. 6. Keeping you informed 6.1 Transact Online We may communicate important information to you through Transact Online if you have chosen to receive communications this way, either in your Portfolio Application Form or in a separate Instruction. This means we will not send the same information to you through the post and we will assume you receive all our communications so you should check your Portfolio regularly or ask your Adviser to check it for you. 6.2 Regulatory conditions (1) We will send you statements, and keep any records as required by the FCA. Currently, as well as sending you Transaction statements and keeping Transaction records, we provide statements every six months (as at 5 April and 5 October). Your statements are also available securely on Transact Online. If, having used our reasonable endeavours, we have not been able to obtain a valid address for you, you will be deemed to have opted out of receiving paper statements unless you subsequently provide us with a valid address. You will, at all times, be able to access your statements securely using Transact Online. 7. Order execution policy We will take all reasonable steps to get the best possible results for you when buying or selling Investments for you. You will find a summary of our order execution policy in Annex 1 to these terms and conditions. 8. Conflicts of interest policy We have set up a policy to deal with any conflicts of interest which might arise. This policy sets out how we identify and manage these conflicts and we will provide you with a copy on request. 9. Our commission rates 9.1 Our commission rates As payment for carrying out execution-only Transactions for you, we will charge commission to your Portfolio as set out in the Transact Buy Commission Table and Transact Annual Commission Table. Our commission will be charged on the following occasions and in the following amounts: (1) Buy Commission Whenever we use Cash to buy an Investment for you, we will deduct from your Portfolio an amount equal to the percentage stated for Buy Commission in the Transact Buy Commission Table multiplied by the cost of that Investment. (2) Annual Commission At the end of each Month, we will deduct from your Portfolio amounts equal to: (a) The percentage stated for Annual Commission (Cash) in the Transact Annual Commission Table multiplied by the average value of Cash balances over that Month (b) The percentage stated for Annual Commission (Investments) in the Transact Annual Commission Table multiplied by the average value of Investments over that Month. (3) Transactions without an Adviser For any temporary period during which you do not have an Adviser appointed (for example, because your Adviser has gone out of business) the percentage multipliers for Buy Commission and Annual Commission shall be increased by adding the following percentage rates to them: Buy Commission 3.00% Annual Commission (Cash) 0.30% Annual Commission (Investments) 0.50% (2) You may send us a written notice to appoint an agent to receive statements on your behalf. (3) If your paper statements are returned to us because the mailing address you provided is no longer valid we will stop sending you paper statements until such time as we have obtained a valid address for you. 11

12 9.2. Ancillary Services For the avoidance of doubt, no additional charge is made in respect of: (a) (b) (c) (d) Arranging safe custody of your Investments Issuing you with a PIN and a Portfolio number Maintaining records of all Transactions undertaken on your behalf and providing you with access to the information contained in those records Providing you with regular valuations of the Investments in your Portfolio. 10. Payments to your Adviser We will pay your Adviser, from your Cash, the amounts you have agreed (as set out in your Portfolio Application Form) for intermediary services for Transactions as follows: (1) Initial (a) When we use Cash to buy an Investment for you, we will pay your Adviser from your Portfolio an amount equal to the Initial percentage stated in your Portfolio Application Form multiplied by the value of the Investment unless any Cash used to buy the Investment is Switch Cash. If any of the Cash used to buy the Investment is Switch Cash we will pay your Adviser from your Portfolio an amount equal to the Switch percentage stated in your Portfolio Application Form multiplied by that part of the Cash used which is Switch Cash. (b) These payments will be made when the Transaction completes, unless you have specified that the payment is to be made on a Portfolio establishment fee basis on your Portfolio Application Form, in which case we will make the payments when we receive Cash into your Portfolio or the relevant Investments have been transferred into your Portfolio. (c) Please note that if you have specified the same percentage for both Initial and Switch payments, the information we provide to you about Adviser payments will simply refer to an Adviser Buy payment. (2) Annual (a) If you have agreed to make annual payments to your Adviser, at the end of each Month we will pay your Adviser, from your Portfolio, amounts equal to the Annual (New Cash) percentage stated in your Portfolio Application Form multiplied by the average value of Cash (that is, New Cash and Switch Cash) over that Month and the Annual (Investments) percentage stated in your Portfolio Application Form multiplied by the average value of Investments over that Month unless you have agreed to make the annual rate on Switch Cash the same as the annual rate on Investments. (b) We will change the percentages set out in your Portfolio Application Form if we receive a Transact Adviser payments amendment form (available on Transact Online) or equivalent written signed Instruction from you. We may decrease those percentages on receipt of an Instruction to do so from your Adviser. (c) We will pay your Adviser from your Portfolio any extra amounts you both agree as soon as possible after receiving your written Instruction or the relevant Transact form (available on Transact Online). (d) We are not legally responsible for paying any tax or similar charge in relation to Adviser payments. We will, however, pay your Adviser from your Portfolio a VAT Adjustment if you have selected this option on your Portfolio Application Form or other relevant Transact form (available on Transact Online). 11. Other charges and payments (1) We will take Wrapper administration charges from your Portfolio for the amount and at the frequency set out in the Transact Commissions and Charges Schedule, as they apply to each Wrapper. (2) We may make an extra charge for any work involved if you want to transfer Investments or Cash out of a Wrapper to another manager, trustee, custodian, agent, administrator or other similar organisation. (3) You will pay any fees, costs, expenses, taxes, duties, levies, charges, imposts and other liabilities and deductions that arise in connection with buying, looking after, valuing and selling any Investments or which otherwise relate to your Portfolio, including (but not limited to): (a) Charges associated with collective investments (for example, unit trusts and OEICs) which are charged by Fund Managers or other product providers (b) Equity dealing charges (c) Any stamp duty, government or bank charges (d) Any levy imposed by the Panel on Takeovers and Mergers (e) The costs of any currency conversion (f) Any costs we incur in connection with a Transaction which does not complete for any reason. (4) Details of our dealing charges relating to Investments listed on the London Stock Exchange and charges for Express Trades are set out in the Transact Commissions and Charges Schedule. 12. Changing Adviser (1) To change your appointed Adviser, please send us any of the following: (a) A signed letter from you telling us that you have appointed a new Adviser, including the new Adviser s details (b) A copy of your letter to the new Adviser appointing them, certified as a true copy of the original by a Registered Individual of your new Adviser or by an accountant, solicitor, barrister, notary or court official (c) A copy of your letter to your new Adviser accepting their terms of business, certified as described in clause 12(1)(b) above. 12

13 (2) A request to change your Adviser will relate to all your Portfolios unless you say otherwise. You can only have one Adviser for each Portfolio. Your new Adviser will apply from the date we update our records and the Adviser is registered with us. (3) When you change Adviser we will make payments to your new Adviser from your Portfolio on the same terms as we made them to your previous Adviser unless you send us an Instruction to change those terms. (4) If your current Adviser tells us that you have appointed a new Adviser we will still need written confirmation from you as set out above. Until then, we will consider you as not having an Adviser and extra charges will apply as set out in clause 9.1(3). (5) If you want to change your Registered Individual rather than your Adviser you should agree this with your Adviser who will then let us know so we can update our records. 13. Closing your Portfolio or a Wrapper 13.1 Closure by you (1) We will carry out any Instruction to close your Portfolio or any Wrapper as long as your request meets the terms of the Wrapper and does not breach any legal or regulatory restrictions. (2) If you send us an Instruction to close your GIA, we will treat this as an Instruction to close your Portfolio, unless there are other Wrappers in your Portfolio. If this is the case, we will not accept your Instruction to close your GIA unless you instruct us to close all of your other Wrappers as well. (3) We will treat an Instruction (under clause 13.1(1) or (2)) to close a Wrapper or Portfolio as an Instruction to sell all of your Investments in that Wrapper or Portfolio and then withdraw all the Cash. (4) If you have a Transact Personal Pension Plan, Transact Executive Pension Plan, Transact Section 32 Buy-Out Bond or Transact Pension Income Withdrawal Facility Wrapper, an Instruction to close your Portfolio must include details of the approved pension arrangement to which you are transferring your plan or, if applicable, the annuity you are buying with the final Wrapper Value. Until that transfer or purchase has completed, we will not accept any other Instructions for that Wrapper. However, all commission, charges, fees, expenses, taxes or other amounts which are due and relate to that Wrapper will continue to apply. (5) Immediately before the transfer or withdrawal of Cash or Investments from a Wrapper or Portfolio, we will first take all commission, costs, charges, fees, expenses, taxes or other amounts you owe us but have not yet paid which relate to that Wrapper or Portfolio or any other Wrapper or Portfolio in your name or joint names Closure by us (1) We will be entitled to close a Wrapper in your Portfolio in line with the terms which apply to that Wrapper. (2) We will be entitled to close your Portfolio: (a) If you have not given us any documents we need to meet our regulatory or legal responsibilities (b) If you have failed to provide us with satisfactory evidence or documentation in order for us to complete our anti money laundering verification process (c) If we believe, acting reasonably, that any information or declaration you have given to us is untrue, misleading, or incomplete in any material way, or if you fail to inform us of any information you later become aware of which makes any previous information untrue, misleading, or incomplete (d) If we have to under the terms of a court order (e) If the Cash balance of one or more of your Wrappers has fallen below the minimum balance set out in clause 3.8 (f) If you have transferred out, or sold and withdrawn the sale proceeds for, 95% or more of the Value of the Investments and Cash in one or more of your Wrappers (g) If you have legally transferred, or tried to transfer, your Portfolio to anyone else without our written permission (h) If you have lent, deposited as collateral or used as security, one or more of the Investments in your Portfolio, or have tried to do so without our written permission (i) If you have done, or failed to do, something which means we are unable to comply with our legal and/or regulatory obligations (j) For any other reason expressed in these terms and conditions or the terms and conditions of an applicable Wrapper. (3) We will let you know in writing the date on which we will be closing your Portfolio. If we do decide to close it, we will treat this as an Instruction from you to close your Portfolio Closure generally (1) We will not be legally responsible for any commission, costs, charges, fees, expenses, taxes, or other amounts which become payable by closing your Portfolio, or any Wrapper. (6) Even if you close your Portfolio or any Wrapper in your Portfolio, you will still be legally responsible for any commission, costs, charges, fees, expenses, taxes or other amounts you have not paid, until you have paid them in full. 13